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The Consumer Financial Protection Bureau has released rules limiting the fees that mortgage lenders can charge borrowers. The release comes in advance of a formal rule proposal, expected this summer. The rules are meant to eliminate confusion among borrowers about origination points and discount points. "We want to bring greater transparency to the market so consumers can clearly see their options and choose the loan that is right for them," said CPFB Director Richard Cordray.

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A proposal from the Consumer Financial Protection Bureau would alter some portions of the qualified-mortgage rule, making it easier for nonprofits to provide and service loans to underserved borrowers. Another proposed change provides a route for lenders whose points and fees exceed the rule's 3% limit to refund the excess charges, in certain cases, so the loan still meets the QM definition.

The Consumer Financial Protection Bureau has fined Mortgage Master $425,000 and Washington Federal $34,000 for what the agency says are numerous data mistakes in mortgage applications as disclosed under the Home Mortgage Disclosure Act. "Today we are sending a strong signal that no mortgage lending institution -- whether bank or nonbank -- should be able to mislead the public with erroneous data," said CFPB Director Richard Cordray. The lenders said the errors were administrative and technical and did not harm borrowers.

The new mortgage rules released by the Consumer Financial Protection Bureau limit fees and points to 3% of loan value. That number includes closing costs, which homebuilders who offer mortgages say is unfair and will cost them business. They argue that the efficiency they provide will be compromised, which will slow home sales.

Thirty-nine House Democrats have introduced the Overdraft Protection Act, which limits bank overdraft fees to one per month and six total per year. The legislation isn't expected to be enacted this year but gives lawmakers an opportunity to take a stance on the issue during an election year. The bill also calls for an end to the reordering of transactions from highest to lowest and requires that overdraft fees be proportional to purchases.

Mortgage giant Fannie Mae earned $2.7 billion in the first quarter, marking its best financial performance since the U.S. government rescued it in 2008. Declining mortgage delinquencies helped boost profit. Fannie Mae will make a $2.8 billion dividend payment to the Treasury Department.